7-Eleven Expanding Proprietary Product Line

7-Eleven Inc. is bundling two of its most popular proprietary items–the Big Bite Oscar Mayer quarter-pound hot dog and Big Gulp fountain drink–with one of its new private-label kids on the block, 7-Select chips in a $2.99 meal deal that runs through the summer.

The value meal coincides with the company’s scheduled rollout of more than 100 new and redesigned private label products during the next few months.

The extensive line-up of products sold under the 7-Select brand crosses all store categories including juice, jerky, animal crackers, gummi worms, paper goods, personal care items, sports drinks, sandwich bags, office supplies, batteries, cooking oil and motor oil.

“7-Eleven has aggressively launched a complete line-up of 7-Select products and is testing a third wave of private-label products in select stores,” said Kevin Elliott, 7-Eleven’s senior vice president of merchandising, marketing and logistics. “We believe consumers are already appreciating the quality and value the 7-Select brand offers.”

While 7-Eleven has offered non-food items like bottled water under the Classic Selection brand for 16 years as well as 7-Eleven branded non-foods items, the company introduced 26 snack items last November bearing the new 7-Select brand name. This month Classic Selection water joins the 7-Select family.

Quality Classic Selection Water already garnered a loyal following and is one of the company’s biggest private-label success stories. Introduced in 1993, the store brand now accounts for more than 25 percent of total bottled water sales at 7-Eleven and continues to grow.

As Americans continue to take a more cautious approach to spending and doling out their discretionary income, private-label products have experienced significant growth as viable alternatives to their higher-priced brand-name counterparts, Elliot said.

According to a study by A.C. Nielsen, the private-label industry enjoyed a 10-percent increase (dollar growth) last year, with much of that in the second half of the year. Growth is expected to continue through 2009.

Customers who purchase 7-Eleven’s $2.99 meal deal introduced this month can choose from seven varieties of kettle-style potato chips and two brands of popcorn. The featured chips will be prominently displayed at the grill.

In addition to special displays, 7-Select products are stocked where customers would expect to find them–alongside brand-name goods where price, value and quality can be easily compared.

“We believe that once people realize how great the chips taste, they will be more receptive to trying other 7-Select items,” Elliott said.

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